How to Choose the Right Leadership Development Provider

t h g i R e h t e s o o h C o t w Ho

p i h s r e d t a n Le elopme v e D r e d i v o r P

INTRODUCTION Leadership development is essential to the long-term success of any organization for many reasons. There will always be a need to develop the next generation of leaders, particularly in today’s business environment as baby boomers exit the workforce.

Effective leaders can improve employee engagement and satisfaction, helping teams meet objectives and raise profits.

The availability of leadership development programming alone can boost employee engagement, which helps companies attract and retain the talent needed to fill gaps in resource pipelines.

Organizations looking to implement, refine, or expand leadership development programs have a variety of options to choose from, and there are several factors to consider as you navigate the offerings. Above all, the approach you choose should reflect your organization’s specific needs – your talent, your objectives, and your budget, to name a few.

CONTENTS Development Assessment............ 2 Questions to Ask Yourself............ 2 Score + Needs..................................... 3 Marketplace.........................................4 Evaluating Providers.......................... 5

In the following guide, we present a series of resources and frameworks to help you determine the leadership programming that’s right for your organization. We present a framework for assessing your needs, an overview of the marketplace, tips for engaging vendors, and answers to frequently asked questions.

Custom FAQs.......................................6 Making it Stick.................................. 10

We hope you can take something valuable from this guide. Best of luck on your leadership development endeavors!

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ASSESS YOUR DEVELOPMENT NEEDS What kind of leadership development program is right for you? Before you explore the market, develop an understanding of your organization’s requirements.

This assessment will help you identify a leadership development approach that works for your organization. Answer the 6 questions below, then add up the points to determine the scope of your requirements.

1. How would you describe the difference between the leadership skills and organizational competencies of your current workforce and those needed to support the growth and direction of your organization?

5. What type of leadership development needs are essential at your organization?

1: Functional/Generic. Programming that focuses on specific skill required for success in current position 3: Organizational. programming that focuses on leadership and strategy execution 5: Complex. programming that focuses on a wide range of leadership needs including leading change, changing culture, and preparing for 3-5 years out

1: Minimal Difference 3: Moderate Difference 5: Significant Difference | 1

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2. What level of your organization’s population are you considering for leadership development?

1: 2: 3: 4: 5: | 1

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1: Individual 3: Individual/Organizational 5: Organizational | 2

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1: None to Minimal. All content to be delivered asynchronously. This can be delivered in an online format or through reading books or taking classes in a specific functional area; 3: Blended. Some synchronous, some facilitation.

Requires some content to be absorbed individually, but learning delivered facilitator-led discussions or group activities; 5: Entirely Facilitated. All learning to be done with facilitator in real time. Typically for leadership development that supports a change in behavior.

Programming will likely require role-play simulation or executive coaching

3. What aspects of leadership development are needed?

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6. How much facilitated learning are you considering?

Manager Director Vice President Senior Vice President C-suite | 2

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4. What outcomes are you seeking in leadership development?

1: Help participants decide WHAT to think 3: Help participants decide WHAT and HOW to think 5: Help participants decide HOW to think | 1

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SCORE + NEEDS Add the total of all your points to arrive at a final score.

5-10

11-20

21-30

Your best leadership development options can likely be found with providers that focus on a specific skill set. There are many online learning providers and universities with programs designed for that need.

Consider sending your employees to in-person development programs offered by universities and other providers that specialize in the specific skills/functions that you are looking to support.

Consider partnering with a provider that offers customized leadership programs that meet the specific developmental needs for your organization’s best assets.

Vanderbilt Offers: Online Business Certificate Short Programs

Vanderbilt Offers: Short Programs Executive Certificates

Vanderbilt Offers: Custom Programs

Have questions about your score and needs? Ask our Executive Education team. We can help build a customized solution or answer questions about other programs offered through Vanderbilt Executive Education.

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MARKETPLACE Regardless of your score, there are several options available to you.

The 3 key players in the external market are: university-based executive education providers, consultancies, and online providers.

University-Based Executive Education (UBEE) Most University-Based Exec Ed providers are housed in the business school of a college or university.

Their programs use professors and facilitators known for research in particular disciplines. Universities have physical space designed specifically for programming, including rooms with task chairs and a variety of table layouts, breakout rooms, audiovisual setups, and adjacent space for catering. Pricing for UBEE is typically commensurate with the school’s ranking, and because of institutional focus on research (their mission), universities are most in-tune with market conditions that support their content. Most top-ranked business schools have open enrollment short programs available to individuals and offer bespoke programs for organizations looking for a more tailored leadership development program.

Online providers

Consultancies For large consultancies, leadership development is an extension of the organization’s consultancy practice – consultants are typically hired to help with an organizational crisis and make a recommendation. Their knowledge is deep; however, tapping into this knowledge typically comes with a higher price tag. Consultancies can be hired for custom programs; they do not offer open-enrollment programs.

Smaller boutique consultancies may be more reasonable price-wise, but often, they will be leveraging research and simulations designed by universities.

Online providers are best suited for providing education on the hardskill area (i.e., finance, accounting, marketing, operations,) as opposed to soft skills (i.e., leadership, leading change). Often, these providers are used for larger audiences, where distribution of knowledge is best achieved through online means. This is an area of growth in the industry, and there are companies trying to be more adaptive in their delivery methods for stickier learning.

42

%

The number of employees willing to leave their current jobs because of a lack of learning opportunities

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HOW TO EVALUATE CUSTOM LEADERSHIP DEVELOPMENT PROVIDERS If you scored a 21 or higher on your assessment, then you should consider evaluating providers that offer custom leadership development programs. There are several factors to think through once the search process commences. Scoring vendors on these core attributes can help you develop a clearer picture of which provider is the best fit for you:

1.

Experience Level of Cohort

2.

Context

3.

Flexibility / Customizable Features

4.

Portfolio of Programs

5.

References

6.

Faculty Experience

7.

Industry Expertise

8.

Geographic Reach

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CUSTOM PROGRAM FAQS Custom leadership programs come in all shapes and sizes.

Here are a few of the most common questions about leadership development programs.

Where should we hold our leadership development program?

Impact and convenience are factors to consider when deciding upon a location for your program.

Holding your program out of the office presents several advantages. Removing participants from their routines and distractions that pop up at work can increase their focus on the experience. Different surroundings trigger different ways of thinking and promote alternative perspectives that enrich learning for everyone. Whether it’s a university, which naturally fosters a spirit of education, or a retreat, conference center, or hotel, leaving the office adds a level of intention to the program that benefits participants.

Conversely, holding your program onsite can offer logistical advantages, especially when there are multiple schedules to juggle and additional considerations – i.e., when the program is scheduled alongside business activities like annual meetings. That being said, offices would still need space for catering, breakout sessions, and for participants to stretch their legs. Offsite facilities normally have such capacity.

Investing in your employees is a signal to them that they are valued by leadership.

A sense of belonging and understanding of where I’m going next are two of the key reasons why people join companies.

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How many participants should the program include?

There’s no magic number, but anywhere between 15 and 40 participants is optimal. The sweet spot is typically 30 to 35 participants.

Programs with fewer than 15 participants may not have a sufficient range of ideas and experiences to draw upon during activities and workshops. It may also create challenges from a financial perspective if you allocate your leadership development budget on a per person basis.

Bringing more than 40 people into a program can create administrative challenges that could dilute the learning experience. If you’d like to include more than 40 people, consider multiple workshops.

How long should my program be?

It depends on your goals, your budget, and the constraints associated with time away from work. Those are the 3 factors many providers will consider when they design programs. Programs can range from a half-day to 10 days. Multi-day courses can be spread out over the course of months, up to a year.

For longer programs, providing a gap between workshops can offer the opportunity for participants to apply what they’ve learned and then return to assess their work. For shorter programs, it’s important to reinforce, measure, and encourage learning after they conclude.

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How much does all of this cost?

Custom leadership development programs typically run between $3,000 and $10,000 per participant.

This includes the cost of designing the program, the location, the faculty / facilitators that execute the program, and teaching materials, which may include case studies or simulations.

How do I calculate the return on an investment in a leadership development program?

The return on investment (ROI) is contingent upon the organization and the goal of the program.

Every organization is different, and by design, every custom program has different desired outcomes.

Broadly speaking, leadership development investments can help with retention of valuable employees, which can reduce costs associated with turnover and company performance. However, if you’re considering a leadership development program, there’s a good chance you have a more specific goal in mind. If you seek to change behaviors, consider measuring success through post-program assessments that evaluate the impact of the program. Your program may involve a project component where ROI can be measured through successful execution. As you engage with vendors, keeping your goals in mind will make it easier to establish ROI.

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How are the programs conducted?

What does the curriculum look like?

A good custom program offers a curriculum to facilitate and maximize participant engagement. This can be achieved in a variety of ways: through case study discussions; breakout sessions with group exercises; role playing; in-person and online simulations; team coaching; and assessments to build selfawareness. Many programs will have participants practice what they learn within the program.

Ideally, a custom program should not be a series of lectures. A blend of instruction and activities that bring lessons to life will resonate with participants far more than presentation slides alone.

How can I be sure this programming will “stick” with participants? How do I measure proof of learning?

At the core of any question about the ROI of leadership development programming is a far simpler one: “Will this stick?” Vendors can provide any variety of prepackaged or customized training, but if the participant can’t bring that knowledge to bear in the workplace, it’s not worth much.

Good custom programs factor retention into the design of each engagement. The look and feel varies depending on the client’s objectives, but the intention is the same. Vendors may follow up after the program concludes to help their clients evaluate how the training has impacted participant performance through assessments or additional programming. Clients can measure impact through employee performance appraisals. If it’s possible, they may look at financial results to gauge success.

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MAKING IT STICK Whether you have to make a case to leadership or are in a position to make the call yourself, leadership development is critical. Why should an investment in executive education take precedence over another initiative?

Because no organization can afford the cost of poor leadership. It affects the entire business, from customer satisfaction to employee turnover to strategic decision making. When it comes to talent, development is less expensive than hiring. The cost of attracting new customers is higher than retaining current ones.

Because study after study has shown that leadership development can have a big impact on organizational performance. Companies that focus on developing leaders meet their objectives more consistently. Effective leadership is the second-most influential factor in an employee’s job satisfaction.

Because the concept of lifelong learning has become increasingly significant in an era where rapidly advancing technology has accelerated the pace at which we need to develop new skills and refine old ones. Personally and professionally, we’ve arrived at a point where continuous learning is a requirement.

Leadership is something to learn, through trial and error or more intentional design. Leadership development programs can help organizations take a more measured approach to building the next generation of leaders and reduce the costs associated with the trial-and-error method. We hope this guide can be of some use in your search.

If you have any questions or want to talk about Vanderbilt Executive Education, please contact Jon Lehman.

JON LEHMAN

Faculty Director, Vanderbilt Business Executive Education jon.lehman@vanderbilt.edu

Executive Education

©2022 Vanderbilt and the Vanderbilt logo are registered trademarks and service marks of Vanderbilt University. Vanderbilt University is committed to principles of equal opportunity and affirmative action. Visit business.vanderbilt.edu for Vanderbilt University’s complete EEO and affirmative action statement. REV. 02/22

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